We go back to chatting,
about housing prices and regional accents, and everyone meets each others» eyes.
Think
about housing prices for a moment as shown in the chart below.
«We're a little concerned
about housing prices in the Greater Vancouver area and Toronto,» Brian Porter, CEO of Scotiabank, told Bloomberg TV shortly after the bank's latest financial results were released.
The debate over what to do
about housing prices is hobbled by a lack of reliable data.
There are just so many stories
about house prices and house - building, including:
Putting aside the fact that somebody could be more concerned
about house prices than human suffering, just think about what that statement means.
Details of the 10p tax compensation package could be overshadowed after photographers outside Downing Street see documents outlining government fears
about house price falls.
Additionally there was a rule of thumb stated on the Motley Fool website (I cant for the life of me find the link) stating that a good rule of thumb
about house prices is to do a quick calculation to determine if you should buy in a housing market: If (Price of house) / (monthly rent * 12) < 20, you should consider buying.
(you're upset
about housing price increases?
Now, I have an obvious issue with this misuse of the term «investment» (especially as it pertains to the way portfolio managers and retail «investors» use it), but it also got me thinking
about housing price returns on a larger scale.
This video, part of the REALTOR ® University Speaker Series, contains Dr. Andy Leventis's full talk
about Housing Price Indexes, why they are necessary, the trends that the most popular indexes are seeing and some of the problems associated in tracking price data.
This video contains highlights of Dr. Andy Leventis's talk
about Housing Price Indexes, including the trends that the most popular indexes are seeing.
Still, Canadians across the country are bullish
about house prices.
Not exact matches
After years of brushing off warnings
about the danger of runaway
house prices in Canada's hottest markets, the banks are waking up to the risks
«Given that the decline in home
prices had so much to do with the de-leveraging that was taking place on the consumer side,» a recent 10 % rise in the
housing market «is a key reason for optimism
about growth improving,» Marple said.
But for all of the attention and debate on the matter, we understand shockingly little
about just how much of the market is foreign - owned and what affect that has, particularly on
house prices.
In early 2004, as American
house prices roared higher and there came dire warnings from some quarters
about the existence of a bubble — accompanied, of course, by strident denials from banks, most economists and the mortgage and real estate industries — Ben Bernanke (then still a governor before he became Fed chairman) addressed the problem of what to tell the American people.
Pretty much from his first statements as governor in 2013 — that's
about $ 100,000 ago in real estate appreciation terms — through to last week when the bank released its latest financial system review, Poloz has walked a tightrope between admitting that elevated
house prices and debt levels pose a risk to the economy, and assuring Canadians that the likelihood of a crash is actually pretty low.
In response to a question
about whether a rate cut amounted to pouring gasoline on the overheated
housing market, Poloz said «We admit that these conditions are likely to cause financial imbalances,» in some cases, but that the Bank's primary goal is to ameliorate the «financial shock» to the economy caused by the drop in oil
prices.
It is anomalous to see financial journalists talk
about the futility of market timing in the stock market but then give the impression
houses should be sold to avoid an anticipated collapse in
prices.
When it comes to the final test of value, it's not as much
about the
price of the
house as the perception that the buyer is getting a deal.
In the span of a few days this week and last, several big - bank CEOs and chief economists let loose a flurry of warnings
about surging home
prices in Vancouver and Toronto, where it now costs an average of $ 1.5 million and $ 1.3 million, respectively, to buy a detached
house.
«If you want to get serious
about controlling debt and
house prices, double the down payment requirement on CMHC - insured mortgages in the overheated areas, or tie it to the size of the mortgage issued.»
Since then,
housing prices have grown by 4 % annually, or
about 1.2 percentage points more than inflation every year.
«On the one hand, achieving the medium - term inflation objective of 1.0 - 3.0 % remains a priority for the RBNZ, but on the other hand, the RBNZ is still concerned
about financial instability risks stemming from still - elevated
house prices.»
Since 2005, the Multiple Listing Service's Home
Price Index has climbed 55 %, while
housing prices have jumped
about 90 % over the past decade.
House and Senate Democrats have introduced legislation aimed at lowering drug
prices through a series of aggressive measures, including by requiring biopharma companies to reveal far more information
about their R&D, manufacturing, and other costs.
Both
Price and Gottlieb were questioned on their intimate involvement with biopharmaceutical and health care companies by lawmakers;
Price specifically was the subject of sharp ethics questions
about his financial investments in medical firms that would also benefit from legislation he was pushing while serving in the
House of Representatives.
Asked
about mortgage insurance — which almost one out of every two homebuyers in Canada must buy and which can add thousands of dollars to the
price of a
house — Cran draws a blank.
Mylan CEO Heather Bresch trekked to the
House of Representatives on Wednesday to testify
about her company's controversial
price hike for the EpiPen.
«A stress test that claims that if the Dow falls by 60 %, the unemployment rate rises to 12 %,
housing prices decline substantially more than they did during the 2008 recession, GDP declines by 6 - 7 % — and that all of that can happen and no bank will be in serious financial trouble or have any problem of being undercapitalized or illiquid — I kind of think says more
about itself than it says
about the health of the banking system.»
The jump in home
prices in Stockton and neighboring Lodi — up
about 92 percent over the past five years — is dramatic evidence of the ripple effects of the Bay Area's tight
housing market and the increasingly out - of - reach cost of living here.
About RBC > Media Newsroom > News Releases > Canadian
Housing Affordability deteriorates the most in six years amid surging
prices in hot markets: RBC Economics
That was part of our thinking in late 2013, when inflation was running persistently below target: we were concerned
about the downside risks to inflation, but decided against easing policy further to avoid exacerbating growing household indebtedness and elevated
house prices.
And those condos are
about 40 % of the
price of
houses.
While many are skeptical
about whether or not this tax was the right policy tool, an influx of foreign investment capital, as seen in the Lower Mainland and other urban centres, does contribute to skyrocketing
housing prices.
From
about 1945 to mid-1980, families were able to ride a wave of rising
house prices.
The July
housing data has been somewhat disappointing, but you must keep in mind that the
pricing information runs
about a month behind all of the other data.
About the Survey of Consumer Expectations The SCE contains information about how consumers expect overall inflation and prices for food, gas, housing and education to be
About the Survey of Consumer Expectations The SCE contains information
about how consumers expect overall inflation and prices for food, gas, housing and education to be
about how consumers expect overall inflation and
prices for food, gas,
housing and education to behave.
At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett
about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted
price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the
housing bubble.
I sold my SF Rental
house that I owned since 2005 this year b / c someone paid my
about 30X annual gross rent, which is a very rich
price.
«People don't believe
housing is in a bubble and don't want to hear talk
about prices being a little bit bubblish.»
For home buyers and home sellers, knowing current market value helps you make smart decisions
about how much to offer on a
house you want, or how to
price a home you're selling.
The world is awash in cheap debt, and whether we're talking
about wealthy foreigners or local residents desperate not to be shut out of the market, the siren call of fast - rising
house prices is too powerful to ignore.
The citizens of Palo Alto have done all they can to drive
housing prices through the roof, and then they turn around and complain
about how they can no longer afford to live here.
And by that we mean bring an end to double - digit
price gains, bring
about a steep correction in
house prices to levels the city's lowly middle - class incomes can afford, bring
about an end to staggering household debt levels and ultimately, bring
about the end of
housing as the economy's engine of growth?
Housing prices during the real estate bubble leading to the Great Recession returned
about 6 % per year.
According to The Economist's interactive chart on U.S.
housing price indices, the average U.S. market recovery between 2006 peak and 2012 trough has been
about 63.9 %.
Nonetheless, legislators at the
House hearing voiced concern
about a
price tag they described as unprecedented in Maryland.
-- Some Maryland
House members expressed apprehension
about the $ 5 billion
price tag to lure Amazon's second headquarters to Montgomery County.